ADNOC to acquire 10% equity stake in key LNG development in Mozambique

Image: WAM/ ADNOC

In line with its international growth strategy, Abu Dhabi National Oil Company (ADNOC) has announced the acquisition of a 10 per cent interest in the Area 4 concession of the Rovuma basin in Mozambique, from Portuguese energy corporation Galp.

ADNOC’s investment marks its first venture into the African country.

The Rovuma basin represents one of the world’s largest gas discoveries in recent years, providing ADNOC access to stable natural gas reserves to support its LNG facilities.

Musabbeh Al Kaabi, ADNOC executive director for Low Carbon Solutions and International Growth, said: “For over 50 years, ADNOC has been a reliable and responsible global provider of LNG and we are building on this role with this landmark investment in the world-class Rovuma supergiant gas basin in Mozambique as we deliver on our international growth strategy.”

ADNOC has a growing focus on its LNG portfolio

This strategic move is a part of ADNOC’s efforts to expand its lower-carbon liquefied natural gas (LNG) portfolio to meet the rising global demand for cleaner energy sources and support the global energy transition.

Al Kaabi added: “Natural gas plays an important role in meeting growing global demand with lower emissions compared to other fossil fuels and this acquisition supports our efforts to build an integrated global gas business to ensure we continue providing a secure, reliable and responsible supply of natural gas.”

The Area 4 concession boasts a combined production capacity exceeding 25 million tonnes per annum (mtpa).

It includes the operational Coral South Floating LNG (FLNG) facility, the planned Coral North FLNG development and the planned Rovuma LNG onshore facilities.

The Coral South development, currently operational, has a capacity of up to 3.5 mtpa of LNG and is the first facility of its kind in Africa. The proposed Coral North development is expected to add a further 3.5 mtpa of LNG production capacity.

The Rovuma Onshore LNG development, with a capacity of 18 mtpa, features a modular, electric-drive design aimed at reducing carbon dioxide (CO2) emissions significantly. This design aligns with ADNOC’s ambition to achieve net zero emissions by 2045.

ADNOC in the news

Earlier this week, ADNOC acquired an 11.7 per cent stake in Phase 1 (Trains 1-3) of NextDecade’s Rio Grande LNG project, a leading LNG export initiative in Texas, US.

This acquisition marks ADNOC’s first strategic investment in the US, aligning with its international growth strategy and efforts to expand its lower-carbon LNG portfolio to meet growing gas demand.

The 20-year LNG offtake agreement between ADNOC and NextDecade is for 1.9 million tonnes per annum (mtpa) from RGLNG Train 4, on a free-on-board (FOB) basis at a price indexed to Henry Hub, subject to a final investment decision (FID).

Most recently, ADNOC Drilling has secured a $1.7bn (Dhs6.24bn) contract to provide drilling and associated services to recover unconventional energy resources.

The drilling firm has incorporated a new company, Turnwell Industries, to service the contract and explore future opportunities in unconventional resources.

The new company, which will primarily engage in unconventional drilling operations, will deliver 144 unconventional oil and gas wells as part of the contract. Unconventional energy refers to oil and gas resources trapped in subsurface reservoirs requiring additional technology and processes to unlock them.